Weather Insurance: How Does It Work?
I saw a report a week or so ago on ABC News about weather insurance.
Sometimes it's referred to as vacation insurance or travel insurance.
Several online companies are offering what they call "vacation insurance," deals in which they will reimburse any parts of a vacation that are ruined. "We will cover them if their vacation is rained out," Jeff Boyd, CEO of Priceline.com, told Good Morning America. -- ABC News
These days, more and more companies and services are providing weather insurance to protect you from things like rain delays at sporting events and concerts, as well. And companies are even offering weather insurance for those times when a complete change of plans are required (due to the weather) at your own outdoor events, including weddings.
Here's more about weather insurance...
According to the U.S. Travel Insurance Association (USTIA):
Travel insurance can be purchased from travel agents, travel suppliers (airlines, hotels, cruise lines, tour operators) a private insurance firm, insurance brokers, or online. Travel insurance generally costs from 4% to 8% of the total trip.
Where To Get Weather Insurance
For the record, most of these (but not all) accommodate more to the needs of the professional business owner or event planner. Meaning, weather insurance is generally provided for major events hosted by corporate America (or very wealthy individuals) -- but not always.
If you're looking to purchase some weather insurance, start here:
Trip Insurance Store - the travel insurance experts
WeatherBill - allows companies and individuals to weatherproof their events
Priceline - sunshine is guaranteed... if your vacation is rained out, it's free
All Weather Insurance Agency - manage the financial risk associated with the exposure to uncontrollable weather conditions
Insure My Trip - compare travel insurance prices from 19 different companies
Travel Insurance Services - trip cancellation and interruption travel insurance
Gambling On The Weather
The only "catch" when it comes to weather insurance is the fact that you have to purchase it way in advance. So it doesn't work for the procrastinators out there.
Plus this means, in effect, that you're gambling on the weather.
Yep, weather insurance has become a form of legalized gambling! Weather has become "risky business" and the temperature has become a "commodity".
The Science of Long-Range Weather Forecasting
As it turns out, long-term weather forecasting is a very serious business! And there's quite a "science" to predicting weather forecasts way into the future.
For example, did you know that businesses pay big bucks to Weather Trends so they'll know what the forecast will be one year in advance?
Some of the companies utilizing this service are:
WalMart
Anheuser Busch
Sherwin Williams
Kohl's
Merrill Lynch
Citigroup
- Sam's Club
According to Bill Kirk, CEO of Weather Trends, "These are huge corporations that, for 6 years ... for the fees we charge if we were wrong, they wouldn't subscribe next year."
Watch the video about Weather Trends that aired on ABC's 20/20.
You can request a sample long-range weather report from Weather Trends to see what it's like.
In fact, there is different criteria between long-range and short-range forecasts:
Check it out!... Here's a FUN weather predictor that can be used to help you plan a wedding, a vacation, or some other outdoor event, based on the long-range forecast. Yep, now you can choose a day it won't rain! (...with 85% accuracy)
RELATED:
Losses From Weather Disasters Can Be Limited By Up-Front Insurance Planning
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